Forums
Derivatives - Hedging
AFM
answered on 03-Dec-23 11:19
Sir hedging is done to safe gaurd our existing holdings. Let's say I have a position with delivery of 1000 CR and I think market will go down for next 2 months , in order to safeguard I will short the futures then irrespective of market increase or decrease I will get 1000 cr. But rather than this hedging I can exit 1000 cr and invest in risk free rate of 5 % pa , assets for 2m and after 2months invest back in stocks , in this case I have earned extra income. But where as in case of hedging my 1000cr is safeguarded and didn't earned any thing on it. It is better to sell off and invest in risk free and invest back in stocks right ? Please correct me if I am missing some logic. I understand we need to carefully track market when the trend changes to upward and invest the money back in stocks ,here there is risk of missing out potential gains , this is one challenge. But the same challenge is faced in case of hedging also right? Like if I continuously shorting futures my 1000 cr will not grow even if market is increasing , and how do we know when we need to stop hedging.
latest answer
Thanks , I understood now , just finished futures, will start with options.
Enuguru Sai Nithin
CA Final
★ 78K+
3
474
General clause act
Corporate & Other Laws
answered on 03-Dec-23 13:49
As per general clause act,If the due date is public holiday, then next working day is taken. But in foundation I have studied like if it is sudden public holiday,then next working day is taken. If it is a known public holiday like independence day, diwali etc, if due date is such date then preceding day is taken Which is correct???
latest answer
Public holiday or sudden public holiday we consider next working day as per the general clause act.
Krishnan K
CA Inter
★ 5K+
4
520
Dec mtp
Accountancy
answered on 04-Dec-23 16:55
Employees had taken stock worth ` 20,000 (Cost price ` 15,000) on the eve of Deepawali and the same was deducted from their salaries in the subsequent month. Journal entry
latest answer
Yes
Devi sri K
CA Foundation
★ 7K+
17
624
Account current
Accountancy
answered on 03-Dec-23 09:05
Balance in Cooper’s Account (Credit) It is debit balance or credit balance
latest answer
Ok sister 👍 thnks
Devi sri K
CA Foundation
★ 7K+
5
457
Books for may 24
Others
answered on 03-Dec-23 14:45
I have given group 1 of ca inter nov 23 so do I have to order new books for may 24, if yes, what is the process??
latest answer
I'm converted to new scheme as per icai rules wait for 7 working days for confirmation mail. If you receive confirmation mail then u can order books.
Prasoon Tiwari
CA Inter
★ 22K+
6
550
Conversion
Others
answered on 03-Dec-23 16:33
Does anyone know if there has been a confirmation email regarding the approval of the conversion application and the CDS coupon?
latest answer
Hello bayya , you won't receive any confirmation mail after successful conversion ..you can only receive mail only when you placed an order for books .. My conversion and placing an order for books finished in 3 days
MUHAMMED FARIS KK
CA Inter
★ 15
5
602
Reg Ordering books in cds portal
Others
answered on 01-Dec-23 23:55
I've applied for conversion and its approved in ssp portal but still i couldn't avail coupon code in cds portal for ordering new scheme books
latest answer
My conversion and getting coupon to place an order took me exactly 3 days , there's no point in waiting for 7 -10 days for a simple thing to be done
abilash ganapathi
CA Inter
★ 750
5
502
Ifos
Direct Taxation
answered on 08-Dec-23 13:33
Good evening sir In IFOS chapter You said for gift of immovable property, we check 50,000limit for each TRANSACTION. My doubt is whether we need to check 50,000 limit for each transaction or for each immovable property??
latest answer
Perfect
Krishnan K
CA Inter
★ 5K+
5
513
Dec 2023 RTP
Accountancy
answered on 04-Dec-23 16:00
Q.4 B (4).....' Bad Debts aggregating 45,000 were written off during the year in the Sales Ledger but were not adjusted in the General Ledger' What does 'written off during the year in the Sales Ledger' mean? Answer to the question was: Bad Debts dr. to Suspense Ac (written off but not adjusted in general ledger)---> narration
latest answer
Ok sir, thank you!
Vishnu Muraleedharan
CA Final
★ 32K+
2
669
Carrying cost
Costing
answered on 01-Dec-23 11:39
If in the question they have given the percent of cash credit ,why should we take that percent for calculating carrying cost
latest answer
Assume you have taken a loan of 1 lakhs and brought inventory worth 1lakhs, now you have to store this goods for 1 month before sending for production or to sell directly, then you will incur interest on 1 lakh at 10percent, then carrying cost or holding cost of inventory will be 10k
Gayathri S Nambiar
CA Final
★ 2K+
1
458